Crypto game developer Animoca Brands raises $110 million

LONDON, Sept 8 (Reuters) – Hong Kong-based blockchain game developer Animoca Brands has raised $110 million from investors, the company said in a statement on Thursday.

The company issued convertible notes in a financing round that values ​​it at about $5.6 billion, it said.

New investors include Singapore-based Temasek, global venture capital firm GGV Capital and China-focused asset manager Boyu Capital, the statement said, with some existing investors also contributing.

“Our new investors will contribute strategic advice and perspective,” Animoca Brands co-founder Yat Siu said in a statement, describing it as a “special strategic round of fundraising.”

Animoca Brands has invested in more than 340 companies to build its vision of a “metaverse” based on blockchain technology, where users can buy and trade digital assets in the form of non-fungible tokens (NFTs).

NFTs surged last year as speculators piled into digital assets and the metaverse became a tech buzzword. But sales volumes have fallen sharply in recent months as investors have become more risk-averse, cryptocurrency prices have fallen and the much-hyped metaverse has shown little sign of materializing. read more

A spokesperson for Animoca Brands downplayed the impact of the “crypto winter” — industry parlance for a period of low prices — that has wiped about $1 trillion off the cryptocurrency market this year, according to CoinGecko data.

The funds collected will be used to make more acquisitions and investments, as well as product development and securing intellectual property licenses, the statement says.

“We take a long-term view, and also note that blockchain gaming has been relatively less affected by the cold than some other sectors,” the spokesperson said without elaborating.

Top blockchain game Axie Infinity, which is backed by Animoca Brands, has seen a sharp decline in monthly sales volume, buyer numbers and average sales prices since January, according to market tracker CryptoSlam.

Animoca Brands raised $75 million in July and $360 million in January. read more

Reporting by Elizabeth Howcroft; editing by Jason Neely and David Evans

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